Selling Your Business
Business owners often perceive the sale or disposal of their business as a fitting conclusion to a life’s work. Indigo has a proven track record in achieving maximum value for our clients.
One very obvious but often overlooked point is what the business owner will do post-sale. At Indigo we take time to walk our Clients through the options, to ensure that a successful sale is the start of the next chapter in their lives rather than simple to end of the current one.
Indigo Guarantee – we will never give you the ‘hard sell’ – selling your business is a major and deeply personal decision.
Selling your business and realising its capital value is a complex and demanding undertaking that the majority of business owners will only experience once in their life.
At Indigo we guide our Clients through the complexities of the sale process, allowing them to retain control at all stages and ensuring that their individual objectives are met.
Indigo has extensive experience advising and supporting Clients in the planning, negotiating and completing a sale. We provide practical support to business owners including:
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Methods Of Sale
Selling the individual assets of the business, for their highest open market price. This method benefits from being swift and simple but the major downside is that you don’t get paid for goodwill.
Trade Sale Or Acquisition
This is what the majority of business owners think about when they imagine selling their business, an unconnected third party buying it in its entirety. A trade sale will value the business based on it’s income stream (a ‘multiple’ of the businesses profits) not just the individual assets therein. Identifying buyers who desire the business for strategic reasons will ensure the highest multiple possible is achieved and thus the greatest return for goodwill. A word of caution, a rigorous and well executed trade sale can take anywhere between six months and three years, so patience is sometimes required.
Management Buy Out (MBO)
A great way of achieving an exit and offering your loyal staff the opportunity to enrich themselves. In essence the management team buys the business off you at an agreed price. A MBO incorporates most of the benefits of a trade sale while offering you, as the business owner, infinite options in respect timeframes, timing of consideration and post-sale involvement. Also there’s no hard nosed third party to negotiate with. However depending on how the transaction is structured, the business owner often has to wait for an element of deferred payment.
Management Buy In (MBI)
Same rationale as MBO with a new management team buying in with the associated advantages and disadvantages.
This is appropriate where there are a number of partners/shareholders in the business and one would like to or has to exit. An agreed valuation is put on the business which is then refined into a value for the percentage to be sold, as the business generates profits the exiting party receives their consideration.